Fund News and Alerts

Standing By: Letters of Credit in Commercial Real Estate Transactions

A letter of credit (LOC) is a document from a financial institution guaranteeing payment once the conditions of the LOC are met. They may be useful in a variety of commercial real estate scenarios, from purchase and sale to landlord/tenant issues. 

Another description of the LOC comes from the decision in In re Lancaster Steel Co., Inc. 284 B.R. 152 (S.D. Fla. 2002): “A unique commercial vehicle designed to substitute the creditworthiness of a neutral party for that of a party interested in an underlying transaction and assure prompt payment of obligations.

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06/01/2023

An Easy Way to Promote Your Practice & Value to Real Estate Professionals

We know you are essential to the closing process, and to help real estate professionals and consumers gain the same understanding, we have launched a statewide “Value of a Real Estate Attorney” awareness campaign. The campaign will be promoted on the below channels. 

• Florida Realtor Legal News
• Title Report Ads
• Paid Search ads - internet online searches
• Social Media
• Outdoor Billboards - Orlando, Miami, Tampa
• Realtor Association Magazines - Orlando, Miami, Tampa

05/25/2023

Chapter 159 and How to Clear the Standard Exception

Fund commitments contain a standard exception for any lien provided by county ordinance or by Ch. 159, F. S. More specifically, the exception excepts from coverage, “Any lien provided by County Ordinance or by Chapter 159, F.S., in favor of any city, town, village or port authority, for unpaid service charges for services by any water systems, sewer systems or gas systems serving the land described herein; and any lien for waste fees in favor of any county or municipality” (the Exception). Of particular note, this Exception not only relates to Ch. 159 municipal liens, but also liens created by county ordinance. The goal of this article is to explore why the Exception is included on Fund commitments, and how to delete it. Read the article

05/01/2023

Authorized Agent Letter and the Title Agent’s Responsibilities

As part of the closing process, once a Fund Member has received a contract to conduct a closing and issue title insurance policies, the lender involved may request confirmation that the Fund Member, also referred to as the Closing Agent, is in good standing with their title insurance underwriter. This letter is commonly referred to as an Authorized Agent Letter. This article describes the Authorized Agent Letter and, if requested, how a Fund Member may obtain it. The request for an Authorized Agent Letter serves as a good reminder of the duties and responsibilities of Fund Members as title agents. This article also reviews some related best practices and procedures. Following the best practices ensures the proper measures are being taken during a transaction to help prevent any instances of fraud or a cloud on title from occurring.  
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04/03/2023

Alter Egos Behaving Badly – Piercing the Corporate Veil and the IRS

Generally, creditors have no recourse against a business owner for the debts of the business so long as corporate formalities, such as separate books and records, separate bank accounts, and proper capitalization, are followed. The corporate entity form is supposed to protect its owners from such liability. That protection is often referred to as “the corporate veil.” But if the company is merely an alter ego of the individual owners, and that alter ego was used to commit fraud, courts will permit creditors to disregard the legal separateness of the business entity from its principals and “pierce the corporate veil.”

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03/01/2023

2022 Sightings of Florida’s “Legal Chameleon”

Florida’s homestead laws have been compared by legal scholars and courts to a chameleon “which changes color to accord with the background against which it is viewed.” Crosby and Miller, “Our Legal Chameleon: The Florida Homestead Exemption,” 2 U. Fla. L. Rev. 12 (1949). This article summarizes the 2022 reported state and federal case sightings of the Florida homestead laws, its “legal chameleon.” 

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02/01/2023

RON, KBA, and the Foreign National Quandry

There is little to argue that since its inception in Florida in January 2020, remote online notarization (RON) has been a resounding success. Certainly, the 2020 pandemic propelled the use of RON to heights likely unimagined by lawmakers, closing agents, or even the RON companies themselves, but regardless of its impetus, there are now over 5,000 registered online notaries in Florida with access to an ever-growing number of RON platforms. Online notaries report to The Fund that the platforms are improving incrementally, bettering the RON-signing session for all involved. Florida online notaries routinely e-record deeds signed by people the world over, avoiding the stresses of mail-away closings and sourcing local notaries. 

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01/01/2023

Closing the Gap Between a Foreclosure Commitment and Foreclosure Court Action

The dynamically evolving nature of the real estate industry is always impacted by foreclosures. Due to federal and state level moratoria in place to assist distressed homeowners during the pandemic, there was a significant decrease in foreclosures in Florida and throughout the country. As we approach a return to normalcy, we expect to see mortgage foreclosures and other small-lien foreclosures rise to pre-pandemic levels. According to an early 2022 study completed by a real estate analyst company, the state with the highest number of foreclosures was California, with Florida tailgating behind and taking second place. Now more than ever, it is important to understand the foreclosure process and how that affects the foreclosure commitment. 

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12/01/2022

The Wait is Over! The New 2021 ALTA Policy Forms: Basic Considerations and Fund Insuring Guidelines

On Oct. 3, 2022, pursuant to authorization from Florida’s Office of Insurance Regulation (OIR), title insurers in Florida began using the new 2021 ALTA Policy Forms with Florida Modifications (2021 Policy Forms). This article focuses on the most significant changes to the 2021 Commitment and Policy Schedules.

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11/01/2022

New ALTA 2021 Commitment, Policies & Endorsements are Here!

The Fund is pleased to announce that the Florida Office of Insurance Regulation has approved the ALTA 2021 Commitment, Policies, and fifteen new or amended endorsements (the 2021 Forms) for use in the State of Florida effective October 3, 2022. The 2021 Forms are the next generation of insuring forms. Read the article

10/03/2022